Real estate chit chat is centering on the new Good Faith Estimate (GFE) which is mandatory with any new mortgage loan applications after January 1, 2009. Since I am a real estate broker I am not an expert on the new GFE and I am learning about it. From what I can see the form is an improvement over the previous version but buyer's should not be lulled into thinking they can rely on it 100%. It is not perfect. It applies to the loan and not to some of the other expenses you may incur at the closing table. In the past the monthly payment of a buyer was the PITI which stood for "Principal, Interest, Taxes (property) and Insurance (homeowners). Now the monthly expense does not include the property taxes. Ask lot's of questions when you apply for your loan!
Here is a link to an excellent article on the new GFE, good place to start to learn about this.
2010 GOOD FAITH ESTIMATE OVERVIEW
